hi friends,
Its great that you have entered in small quantities on that 4500 put becos.This fall is now talking of conclusion atleast temporarily.It good markets are taking nice pauses before heading down each time.A straight fall like recession brings volatile spikes.
So now this month end we need to close above 4700 to atleast think of bullishness can start in monthly frame.
So trade cautiously ,markets may just finish off this year with bears enjoying Christmas or mite do some small bounce back.SO we are entering in small quantities.
Now still also CALL selling can continue.Now the same thing applies to puts also people are just waiting if more fall happens and they are gonna purchase equities at damn cheap prices.Mutual fund guys are also waiting for the same so as a recession start or end level (4300) is really really strong.so obvious 4300 put writing will come.
But write now everyone is cautious with waiting for scene to unfold.
All those 4500 put buyers can exit at 4500 area. or can hold only if we get a closing below that.Finish the year in profit trade and wait for new.
I am still waiting for that jackpot opportunity on charts.But there are very different signals from various charts and indicators.SO hold is the key.
Aggressive traders can start writing 4300 put as i said.We are surely gonna see bounce from there .
Lets see what picture unfolds.
WB Ji,
ReplyDeleteThank you very much for the explanation of option vs future returns. Its sure we - who are following your blog - is gaining confidence. And we are waiting for that jackpot opportunity if comes.
So better we buy some 4500put up to 4700 level bounce. Thinking of three lot put @ 4625, 4650 and 4700 with same lot 4300 put write as a little hedging for the time being.